I have just started to think about having trading as my full time profession; and ironically the market is reversing its direction. Well, it all goes with the life.
Anyway, given below are my views on sensex and its allies indexes.
BSE -Auto Index
as you can see in the image below, the trend line support has clearly been violated around 7200. Currently, the index is at 6927 and immediate support level is 6800. The support at 6800 can only be accepted in case the market takes a 'U' turn from current levels, otherwise, it is very likely to test the support levels at 6250.
Autosector has been a leader in upside movement of sensex and has been trending upside since July 2009 along the trend line. Fibonacci correction levels are
23.6% = 6900 which has already been accomplished
38.2% = 6400 which is a reasonable correction, even if the main uptrend remains intact. So, there is no point in fighting with the trend; and lets just wait for auto index to trade around 6250-6400
Anyway, given below are my views on sensex and its allies indexes.
BSE -Auto Index
as you can see in the image below, the trend line support has clearly been violated around 7200. Currently, the index is at 6927 and immediate support level is 6800. The support at 6800 can only be accepted in case the market takes a 'U' turn from current levels, otherwise, it is very likely to test the support levels at 6250.
Autosector has been a leader in upside movement of sensex and has been trending upside since July 2009 along the trend line. Fibonacci correction levels are
23.6% = 6900 which has already been accomplished
38.2% = 6400 which is a reasonable correction, even if the main uptrend remains intact. So, there is no point in fighting with the trend; and lets just wait for auto index to trade around 6250-6400